Overview
- The metalworking sector recorded a 4.4% year‑on‑year drop in production in July 2026 and has fallen 5.5% in the first seven months of 2026, according to ADIMRA's monthly survey.
- Capacity use stood at just 39.2% in July 2026, one of the lowest readings on record, meaning roughly six of every ten machines were idle and factories ran well below normal output.
- Registered employment in the sector fell 2.2% year‑on‑year in July and the national employer count hit multi‑year lows by May 2026, reflecting sustained job and firm attrition since late 2023.
- The decline is broad based: capital goods and farm machinery led losses while autoparts showed limited export‑linked strength, and all major producing provinces including Córdoba and Buenos Aires posted contractions.
- Industry bodies and academic studies warn the pattern of falling production and a 10.6% drop in metal product imports signals weak aggregate demand and underlying competitiveness problems that will require coordinated macro, trade and productivity policies to prevent further erosion of formal jobs and capacity.